(Kitco News) Bitcoin’s sharp drop in early December during Asian trading hours briefly pushed the price below $84,000, triggering billions in liquidations before buyers stepped back in at the U.S. open. Wendy O, Host of ‘The O Show’, sat down with Kitco News to discuss how the volatility reflected a market where retail traders are strained while institutional flows are expanding.
Vanguard opens access to Bitcoin ETFs as volume surges
A major catalyst, according to Wendy O, was Vanguard’s decision to open its brokerage to Bitcoin ETFs, reversing years of restricted access. The asset manager oversees around $8 trillion, and its move sent more than $1 billion in volume into spot Bitcoin ETFs within minutes of the U.S. session, according to market data.
The developments arrived alongside comments from SEC Commissioner Paul Atkins and renewed messaging from BlackRock on tokenization, with Wendy commenting that “we had all these bullish catalysts at once kind of happen.” She added that traditional finance is “getting a little bit accustomed to our volatility and seeing how our markets work.”
She noted that many retail participants feel “exhausted” in the current economic climate, which can leave more room for institutions to accumulate during periods of stress.
Bitcoin and gold respond differently to macro pressure
Gold held steady above $4,100 during the same period, while Bitcoin traded more in line with high-beta assets as global markets reacted to overnight macro headlines. Wendy O said it is important to recognize that the two assets serve different roles, and that both can function as hedges during geopolitical and economic uncertainty, though they “do different things” and will not always react in the same way.
Strategy Inc., retail strategies, and the role of self-custody
The volatility also revived debate around leveraged exposure to Bitcoin through companies like Strategy Inc., with Wendy O tracking the company’s moves as a signal of traditional finance sentiment, but says she “prefers to hold my Bitcoin myself,” emphasizing that self-custody remains important. She added that “people who are really into Bitcoin absolutely love to dollar cost average or just buy Bitcoin at any price,” reflecting long-term conviction among core holders.
BlackRock’s tokenization push and the next phase of market infrastructure
BlackRock’s recent commentary on tokenization was a central part of the discussion. In an op-ed published in The Economist on December 1, CEO Larry Fink compared the current stage of tokenization to the internet in 1996, arguing that financial assets could eventually settle on blockchain-based rails with near-instant execution.
BlackRock is already moving in that direction through initiatives like its BUIDL fund, according to Wendy O, who commented that the company is “building the infrastructure for this to function properly.” She also notes that the technology could streamline settlement and remove layers of traditional fees.
She encouraged investors to watch U.S.-based crypto projects and assets that have either received ETF approval or are poised to do so. She added that those categories, along with networks forming partnerships with major financial institutions, “will probably be the winners” if institutional adoption accelerates.
Regulation, retail positioning, and the 2026 outlook
Wendy O highlighted shifting regulatory dynamics, including comments from SEC Commissioner Hester Peirce, who stated self-custody is a “fundamental right.” She said the message matters as institutions expand their presence and retail investors reassess how they want to hold assets.
Looking to early 2026, Wendy remains constructive but cautious, speculating “a bullish Q1 of 2026,” noting that policy surprises or market shocks could still alter the trajectory.
She also encouraged viewers to diversify rather than rely on a single narrative. “I think gold and Bitcoin are both really great assets to pay attention to during these times,” she said, citing elevated geopolitical and economic uncertainty.
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